Quarterly Estimated Tax Payment

Discussion in 'Business Operations' started by clayslandscape, Sep 17, 2012.


    Posts: 1,343

    What about personal property tax!
    I had to go to town hall yesterday and pay taxes on all my equipment that i have worked hard to purchase and maintain over the years!
    That is crap!!!!!!!!!!!!!!!!!
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  2. ArcSine

    ArcSine LawnSite Member
    Posts: 5

    @ GrassMasters: The accuracy of the quarterly estimates depends on the accuracy of forecasting the whole year, which seats it squarely in the "easier said than done, and exponentially more challenging when in growth mode" section.

    What you've described (biz in growth phase; quarterly estimates always falling short of actual tax liability) might indicate that the attorneys are preparing so-called "safety" estimates. Roughly speaking, when you figure your taxes will be greater this year than last due to growth, but can't predict by how much, then you at least aim for making quarterly payments which pay in at least as much as your last year's tax liability.

    Even though you'll still owe some tax come Apr 15, the safety estimates you've already made exempt you from certain penalties that'd otherwise apply. Owing tax on your return is no fun, but owing penalties on top of that tax is the real shovel in the face. Tax law lets you escape those penalties so long as you've at least made those 'safety' estimates.

    But if that's in fact what's happening, one option is to get one of those inexpensive roll-your-own tax return software programs (e.g., Turbo Tax or H&R Block's TaxCut). Then, a couple or three times during the year, feed your best estimates of how the year's gonna play out, income-wise, into the program to get an updated idea of how much tax you're looking at for the year. Shoot that info to the attorneys, and have 'em bump your remaining quarterly payments accordingly.

    And yeah, shame on ya for growin' like that ;)
  3. snowman55

    snowman55 LawnSite Member
    from middle
    Posts: 60

    gotta spread your wealth around. America can't count on you knowing what to do with the money you earn from a business "you didn't build"
  4. ArcSine

    ArcSine LawnSite Member
    Posts: 5

    "You have the reached the White House answer line. What is your question, please?"

    Entrepreneur: "Since I didn't build it, I don't have to pay the taxes on it, right? ... Hello? ... Hello?"
  5. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Yup, mentioned that in my reply...nazis.
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  6. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782


    Income taxes are unconstitutional....
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